Landlord and Tenant Flashcards
What is goodwill?
The reputation of a business earnt over time.
What is an inherent defect?
A problem that arises in a property from poor design, workmanship or poor materials.
Unit 14 Grove Village Parade - what were the disregards in the lease rent review clause?
1) Any effect on the rent from the tenant being in occupation.
2) Any effect of goodwill.
3) Any value attributed to improvements carried out by the tenant with Landlords consent.
Unit 14 Grove Village Parade - on what basis was the rent reviewed in accordance with the lease?
Rent to be equal to rent previously payable or revised rent as may be ascertained, whichever is the greater. Market rent.
Unit 14 Grove Village Parade - what were the assumptions in the rent review clause?
1) Property let as a whole, subject to the terms of the lease, on the open market.
2) No fine or premium.
3) Vacant possession.
5 year term.
4) Fit for immediate occupation and use.
5) Covenants fully performed and observed.
6) A1,2,3,5 use.
No work carried out by the Tenant that could diminish rental value.
7) No reduction to take into account any rental concession i.e. fit out period.
Why did you measure Unit 14 Grove Village and how?
For the purpose of valuation for the 5 year rent review. NIA in accordance with Code of Measuring Practice 2015, using disto and ruler. Excluded Toilet and service area.
What rent did you advise in respect of Unit 14 Grove Village and why?
14 shops on parade, gave best comparable evidence and tonal value. Made adjustments for unit specifics i.e. slightly smaller than other units, not directly in front of parking spaces, flexible user clause. Valued at £22 - £24 ITZA.
What terms were offered for the lease renewal of Unit 1 Grove Village Parade?
- 10 year lease, break in tenants favour on 5th year of term, subject to payment of rent and giving up occupation.
- 3 month rent free period
- £18,000 p.a. rent
- rent review on 5th year of term.
- all other terms as per previous lease save for modernisation where necessary.
What MUST a s.25 notice contain?
1) Name and address of the Landlord and Tenant.
2) Address of the property.
3) Date on which the tenancy will end.
4) Confirmation of whether a new lease if to be granted or opposed.
5) Date by which a response is required.
6) Landlords proposals for new tenancy including rent.
7) If hostile, the grounds of opposition must be stated.
8) Must recommend seeking professional advice.
What are grounds A to G of section 30 of the Landlord and Tenant Act?
a - Breach of repairing covenant.
b - Persistent delay in paying rent.
c - Other substantial breach.
d - Landlord provides suitable alternative accommodation.
e - Uneconomic subdivision.
f - demolition or reconstruction.
g - Owner occupaton.
What are the conditions of ground g (owner occupation)?
Landlord must have owned the property for 5 years and prove intention to occupy or run business.
What are the conditions of ground f (demolition or reconstruction)?
Landlord must prove firm intention - including funding, planning, substantial work and necessity to gain vacant possession.
What is a competent Landlord?
Freeholder or superior tenant with more than 14 months left to run.
Name a key case relating to ground g (owner occupation).
Patel v Keles (2009). Landlord stated that he wished to occupy for his own purposes but Court found this unlikely. Landlord could not demonstrate genuine intention to occupy and run business, close to retirement age and had sold off other businesses. A Landlord therefore cannot oppose a lease renewal where they only intend to occupy for a short time, particularly if there is evidence of an intended sale or reletting.
What does s.37 of the L&T Act relate to?
Compensation payable where tenant has not breached the terms of the lease.
Applies to leases granted after 1st April 1990.
